What is Time In Force in Stock & Options Trading? Time in force is a special instruction used when placing a stock or options trade. It specifies how long an order will remain active before it is executed or expires. These instructions are especially important for active traders and allow […]
Trading Terms
114 posts
What is a Reverse Merger? A reverse merger occurs when a smaller private company becomes a public company by purchasing control of a larger public company. The shareholders of the private company usually receive large amounts of ownership in the public company and control of its board of directors. Once […]
What Is a Calendar Spread? A calendar spread is an options or futures trading strategy. It is established by simultaneously entering a long and short position on the same underlying asset but with different delivery dates. In a typical calendar spread, a trader buys a longer-term contract and goes short on […]
What are Marketable Securities Marketable securities are liquid financial instruments. They can be quickly converted into cash at a reasonable price. The liquidity of marketable securities comes from the fact that the maturities tend to be less than one year. Also, the rates at which they can be bought or sold […]
Selling Puts – Selling Put Options for Income to Benefit in Any Market Selling puts is also called writing a put option. It allows an investor to potentially own the underlying security at a future date and a potentially more favorable price. In other words, selling put options allows market […]
What is Theta in Options Trading – What Is Theta? Theta in Options Trading: The term theta for options trading refers to the rate of decline in the value of an option due to the passage of time. It can also be referred to as the time decay of an option. […]